Niche Market vs Mainstream Market

Niche Market vs Mainstream Market A niche market is a focused, targetable portion of a market. Niche markets tend to be small but well defined and specific segments of the population. The market segmentation can depend on the product being sold and can vary based on the targeted audience based on price, quality or differentiation strategies. Since the targeted audiences are usually small and well off, even though there is a specific portion, the profit margins are on the high end. Niche markets do not exist but are made by entrepreneurs, identifying the needs and requirements which are not being met and then aiming to satisfy these with products or services. In a Mainstream Market, products and services appeal to a broader spectrum of the society, and the products and services are readily available to the general public. (Business Dictionary, n.d.). In niche marketing, the company aims to sell to specific people and targets their promotional campaign specifically to the needs of people not being met by mainstream and develops products and services which can be specifically customized and tailored to meet the needs of these individuals, resulting in a strong brand image. However low sales volumes are yielded in this Mainstream Marketing targets all the individuals and profits generated depend upon the quantity of products sold. The company tries to accommodate all the desires of the entire market into one product type. Another advantage being that the producer can close down the market for other competitors. However different marketing mix strategies need to be implemented to reach target audiences as well as multiple products need to be produced. (Rangkuti, 2007) Four successful niche market businesses in United Arab Emirates (UAE) Rolls Royce Motors Owning a Rolls Royce is the ultimate show of wealth and claiming that a person has made it big. Due to the immense oil wealth and hugely successful businesses present in UAE, and the need to stand out from others, this car brands major markets include UAE. The highly levels of craftsmanship, use of latest technologies and being hand built as well as unlimited customization opportunity which caters to all the desires and needs demanded by customers attracts the rich and wealthy to this brand. The fact that not everybody can purchase this car, and special limited edition models being launched ensure that brand loyalty and image is strong. The opening of the worlds biggest showroom in Abu Dhabi has also helped to increase the customer satisfaction and demand in this country. (AGMC Rolls Royce, n.d.) Jumeirah Hotels and Resorts The Jumeirah group is the leading hotels division and is one of the most luxurious and innovative targeting the rich and famous all across the world. The group has its own hotels in Dubai, London, New York and across the globe. Having its own training academy, The Jumeirah Academy of Hospitality Management, ensures that its entire staff is well trained and world class service is provided to its customers. The major attractions include Burj Al Arab, the worlds only seven star hotel and world restaurants and bars as well as complete A to Z services are made available at a phone call. Having world class Spas and the only themed amusement park in UAE have helped the group earn numerous international travel and tourism awards. (Jumeirah International LLC, 2008) Al Tayer Insignia Al Tayer Insignia is the largest luxury retailer in Middle East and is headquartered in UAE. The brands portfolio includes Bvlgari, Boucheron, Bottega Veneta, Dolce Gabbana, Giorgio Armani, Gucci, Ligne Roset, and Yves Saint Laurent amongst others. Due to high net income available per person, people in UAE tend to prefer these luxury brands and the Al Tayer Group caters to their needs by understanding the regions appreciation and needs of luxury and harnessing brand potential through systematic and timely investments. In fact, the Al Tayer group is the first to have license to operate Harvey Nicholas outside UK and Bloomingdale outside USA. This attracts customers as they are assured that al the latest products are made available and the company employs over 1200 employees which embodies excellence in service across all the stores. (AL Tayer Group, 2010) Arabian Adventures Arabian Adventures is the leading destination management company of this region, catering to the needs of the local as well as tourist population by offering cruises, excursions, adventure tours, cultural experiences as well as extreme sports opportunities. As it is a part of Emirates Group and has professional associates and 300 hundred permanent staff trained in 10 different languages. This high quality of service and vast array of activities which are offered under one roof attracts customers. High levels of safety standards, creative approach, individual client customization of packages, in depth knowledge and value added services continue to attract clients and customers to this company. (Arabian Adventures, n.d.) TASK TWO PESTEL Analysis of trend and changes that will give rise to niche market opportunities in the next three years in UAE The PESTEL Analysis will be used to analyse the trends and changes. A detailed description and definition of PESTEL has been included in Appendix 1 for reference. The PESTEL model looks into the macroenvironment by looking into the following factors for consideration: POLITICAL: The UAE has a very stable political environment and even though there is no democracy, the rulers have clear and established laws and policies which are favorable for attracting businesses and investment from abroad. This country has zero income tax and so is the reason for attracting a lot of investment from abroad. The setup of dedicated industrial, information and telecommunication and university zones encourages people to set up business as well as ensure a ready pool of talented and educated staff/employees are available. ECONOMICAL: The global recession had a negative impact across the globe but UAE in particular was the least affected and hence is amongst the first countries to have successfully come out of it. Energy availability at a cheaper price compared with other countries is also a major factor for various industries to have been setup here as power is available with zero interruption. Interest rates are also low and finance is available at flexible terms in UAE. Due to the recent recession, banks and finances have shifted their attention to Small and Medium Enterprises (SME) with the government also supporting the SME sector. SOCIAL: The UAE population has a higher income per capita and consists of majority of expat population which has come to UAE seeking a better lifestyle. Hence, there is tendency to purchase goods which are considered a luxury back home and improve the lifestyle standards. The UAE is very cultural country and there is freedom for everybody to practice their culture freely, hence a lot of revenue is generated during Islamic festivals as well as Christmas and other such days of respected communities. TECHNOLOGICAL: The UAE government is investing a lot in latest technologies and ensures that the latest is available to the public as well as businesses. In fact, SME businesses are offered for example high internet speeds and bandwidth to encourage them and special incentives are offered to those businesses which adapt green policies and techniques. ENVIORMENTAL: UAE is the largest consumer of treated water and has the highest emissions per capita due to reliance on treated water as it is a desert and air conditioning which takes up a lot of energy. Hence businesses which tend to offer such services using fewer emissions are encouraged as well organic foodstuffs shops have the government backing to ensure healthy and fresh food is available. LEGAL: Clear and precise laws are written which encourage businesses as well as protect employee and employer rights and prevent any abuse. Any new building commercial or residential is required to have solar panel etc. to earn green credentials and be energy efficient or else not seek approval from government. Zero Tax on income and special funds for entrepreneurs and competitions are held to find such ensure that there is positive growth in business every year. Four potential niche markets where small business might flourish The first potential niche market is that of organic produce. As UAE is desert, fruits and vegetables grown here tend to be produced in artificial conditions to ensure cheap supply. By focusing on the health conscious population, and providing organic produce a good small business can be set up which has the potential to grow big if done properly Continuing the green trend, the second market to be considered can be providing solar panels and alternative electricity sources for residential areas. The residents of UAE would like to prefer to reduce their air-conditioning bills and this is a lucrative area to focus. The third niche market can be considered of providing hand stitched luxury goods using exotic materials and ensuring limited supply as there are high margins to be earned in this area due to vast income available for expenditure in high net individuals. As there is vast majority of expats, traditional restaurants can be opened catering to the needs of any particular community as they would love to have traditional home cooked style meals. These do not have to be unnecessarily expensive, as greater profits can be earned through volumes sold. Also the hectic and fast lifestyle will favor the restaurants offering take away as this will save a lot of time for people. TASK THREE Entrepreneur An entrepreneur is an individual who builds up capital, establishes a company or by organizing a venture to take benefitaof an opportunity through risk or exercising an initiative. (Sulliavn, 2003) This word is a loan word from French and first defined by Irish-French economist Richard Cantillon. In other words an entrepreneur can be described as a person who is willing to set up a new organization or enterprise or company and take responsibility of whatever the outcome will be. An entrepreneur leads the company and by selecting appropriate managerial staff displays leadership skills. Good sturdy management skills and the ability to build teams are essential qualities required Entrepreneurs emerge on demand as they seek opportunities and are well placed to achieve them and by doing so become leaders as they perceive that they amongst the few present who can analyses and solve the problems. Social composition of workplace and workplace peers are the most significant influence in an individuals decision to become entrepreneur. According to economist Joseph Alois Schumpeter (1883-1950), entrepreneursaare not necessarily motivated by profit butaregard it as a standard for measuring achievement or success. Schumpeter discovered that they greatly value self-reliance, strive for distinction through excellence, are highly optimistic, and always favor challenges of medium risk. (Business Dictionary, n.d.) There are various types of entrepreneurs, Social Entrepreneur who seeks to improve social, environmental, educational and economic conditions, Serial Entrepreneur who continuously comes up new ideas and innovations, Lifestyle Entrepreneur who places passion before profit and Cooperative Entrepreneur who doesnt works alone but works in collaboration with other entrepreneurs amongst others. Entrepreneurship. The American Heritage Dictionary defines entrepreneur, to mean A person withinaa large corporation who takes directaresponsibility for turning an idea into a profitable finished product through assertive risk-taking and innovation. Entrepreneurs focus on research, innovation and creativity to transform an idea into a profitable venture while working within an organizational or such environment. Entrepreneurship is the act of behaving like an entrepreneur while working within a large organization. Entrepreneurs share theasame traits as entrepreneurs such as conviction, zeal and insight andaas the entrepreneur continuesato expresses his ideasavigorously, it will reveal the gap between the philosophy of the organization and the employee. If the organization supports him in pursuing his ideas, he succeeds and if not he is likely to leave and start his own organization. How the role of manager differs from that of an entrepreneur or an entrepreneur? An entrepreneur starts a business to fulfill his vision and has a personal stake in the business and takes the risk of the outcome whereas the manager provides his service in an organization already established by someone. An entrepreneur provides idea, a new solution to a problem, new idea whereas the manager in in charge of running the company, probably in the direction set by the entrepreneur or entrepreneur. There is a differenceain standing; an entrepreneur is the owner of the company whereas the manager is an employee of the entrepreneur or his company. Also an entrepreneur is not induced to fall into fraudulent behavior whereas a manager might do so possibly to earn more or in coercion with rival firms. An entrepreneuradeals with faults and failures as a part of learning experience where asaa manageramake every effort to avoid mistakes and he postpones failure. Entrepreneur is required to have certain qualifications and qualities like highaaccomplishment motive, innovative thinking,aforethought, risk-bearing ability etc. Conversely its mandatory for a manager to be educated in the fields of managementatheories and practices. An entrepreneur can be a manager but a manager cannot be an entrepreneur. (Cite HR: Padma Praveen, 2007) TASK FOUR As a sole trader setting up a small niche market business, online technologies will definitely be needed to be utilized to reach out to the target audience as well as achieve a greater share of the market than otherwise possible. After all, only a certain amount of foot traffic will come into the shop and does not guarantee good sales. In fact, in this modern age one does not even need to upon a retail front or shop and utilizing the Amazon business model run a successful business by just using networking. The web will be the primary method to advertise the companys products as it is the most cost effective method to reach a wider audience. Most frequented websites such as news websites and social media websites can be contacted to place tickers, or banner advertisements on them respectively which can ensure appropriate audience is reached. However the best way to utilize the web is to set up a website which not only displays the company products, gives contact numbers but also gives the opportunity to buy products online. This is the best way to jump start a business without even opening a shop front. Optimum online security will be needed to put in place to ensure that credit/debit card details are not lost and customers feel comfortable in using this facility. Also other payment methods such as PayPal can be used to offer wider opportunities. Cash on delivery can also be offered and some sort of loyalty program can be implemented to encourage sales and increase customer loyalty and bring customers back. Accounts or pages can be made on social media websites like Twitter, Facebook, and LinkedIn etc. which will help reach out to the younger generation and increase customer base. Constant updates and status changes will help generate hype about products being offered as well as online polls can be utilized to decide which colour or product type needs to be launched. This will ensure no bad inventory ends up at the end of every season. Also this will give the customers and potential clients to freely interact with the business and have their queries answered and any complaints resolved directly. This will further improve the brand image and increase sales. Mobile phones are a good medium to advertise the services and products and after paying a fee, set people can be sent SMSs or targeted with a certain income structure and so further increase the chance of guarantying a sale. Also with this modern age where internet is readily available on mobile phones and social media access everyone has, by utilizing such sites as mentioned before a greater audience can be targeted without any additional costs. These technologies definitely make existence easier for small and niche market businesses as the biggest advantage is of cost savings made. Just a small capital is needed and a upfront shop or display area is not necessarily required to start a business and run it. In fact using online marketing strategies a greater market share can be achieved as well as greater customer base targeted. Companies like Amazon have been widely successful using such online marketing techniques; they stared off small targeting niche markets and due to rapid growth became large organizations. List of References AGMC Rolls Royce Information: AGMC Rolls Royce, [Online], Available: http://www.rolls-roycemotorcars-agmc.com/information [28 August 2012]. AL Tayer Group (2010) Our Companies, [Online], Available: http://www.altayer.com/CompanyDetail.aspx?cid=6 [28 August 2012]. Arabian Adventures About Us: Arabian Adventures, [Online], Available: http://www.arabian-adventures.com/en/about-us/index.aspx [28 August 2012]. Business Dictionary entreprenuer, [Online], Available: http://www.businessdictionary.com/definition/entrepreneur.html [28 August 2012]. Business Dictionary Mainstream, [Online], Available: http://www.businessdictionary.com/definition/mainstream.html [28 August 2012]. Cite HR: Padma Praveen (2007) Distinction between an Entrepreneur and a Manager, January, [Online], Available: http://www.citehr.com/23096-distinction-between-entrepreneur-manager.html [28 August 2012]. Jumeirah International LLC (2008) About Us: jumeirah International LLC, [Online], Available: http://www.jumeirah.com/en/Jumeirah-Group/About-Jumeirah-Group/ [28 August 2012]. Rangkuti, F. (2007) Understanding the difference between niche marketing and mass marketing, 23 September, [Online], Available: http://www.helium.com/items/609299-HYPERLINK http://www.helium.com/items/609299-understanding-the-difference-between-niche-marketing-and-mass-marketingunderstanding-the-difference-between-niche-marketing-and-mass-marketing [28 August 2012]. Sulliavn, A. (2003) Economics: Principles in action. , New Jearsey: Pearson Prentice Hall. Ward, S. Niche Market, [Online], Available: http://sbinfocanada.about.com/cs/marketing/g/nichemarket.htm [28 August 2012]. KAPLAN (2010) The PESTEL model, in P3 Business Analysis, Berkshire: Kaplan financial. APPENDICES

Celestial Travel Agency: Marketing Strategy of Philippine Tourism in the United Kingdom

INTRODUCTION The hospitality and tourism industry is one of the most flourishing industries in the world; thus, almost every country relies on the industry. The income that a country gains from the industry is almost half of its gross national product. However, for developed countries, such as the United Kingdom, promoting hospitality and tourism is not a problem since they are already known and well-established worldwide. On the other hand, for developing countries where they mostly rely on the industry for income, such as the Philippines, upholding their hospitality and tourism sector will be hard.A lot of factors have to be considered, for instance, safety and security of the tourists, the cost of the tour, and the significance of the place as tourism nowadays relies on popularity—the more popular the place is, the more tourists it will attract. Thus, the demand for effective marketing strategies and public relations is a necessity. There are Filipino travel agencies in the UK, yet the number of British people who visit the Philippines is still low compared to the other countries in Europe, such as Germany and Netherlands.The main reason for this is the effectiveness of the marketing strategies used by these agencies. It is also noted that most of these travel agencies focus on the Filipinos in the UK as their target market. This research aims to develop marketing strategies for a hospitality and tourism organization by critically evaluating marketing strategies in the hospitality and tourism sector, assessing the role of network and customer relationship marketing strategies for hospitality and tourism organizations, and recommending marketing and customer loyalty strategies for a hospitality or tourism organization.Also, it aspires to critically evaluate marketing communication strategies for hospitality and tourism organizations through brand strategies, e-marketing, viral marketing, and guerilla marketing. The author chooses Celestial Travel Agenc y, a Filipino travel agency based in Victoria, London. The agency offers travel and tour packages to the United Kingdom and some parts of Europe and the Philippines. Majority of its clients are the Filipinos who are in the United Kingdom.The researcher will investigate the marketing strategies the organization is utilizing, and afterwards, the author will develop a marketing strategy that can be viable for the organization in order to increase market share. METHODOLOGY OF RESEARCH This study is a qualitative research that attempts to discover the best marketing strategies utilized by organizations in the hospitality and tourism industry that will be applicable to the subject of research. It intends to accrue existing data governing the principles of marketing strategies. Thus, secondary research will be exhausted during the course of research.ESSENCE OF MARKETING Marketing (Armstrong, et. al) is â€Å"managing profitable customer relationships. † It has two main goals which a re to attract potential customers by guaranteeing them superior quality of service and products and keeping the current customers and making them loyal to the organization by giving them satisfaction. The sole purpose of marketing is to deal with customers; however, it is not the simplest function in the business world as it involves a lot of activities from product development, production, and distribution to branding, selling, and advertising.Hospitality and tourism organization has to understand that nowadays, marketing is not just about simply telling and selling of goods, but it is about satisfying customer needs as well. The marketing department of an organization is the busiest and in fact carries the heaviest load of promoting the products. Whatever the profit that the organization makes is reflected on the activities done by the marketing department. Figure 1. A simple model of the marketing process. When doing marketing, one must have to consider that most consumers are: ? More concern to the prices of a product or a service Gives less interests to marketing messages ?From the average segment of the society Given this situation, a marketing manager has to bear in mind the substantial four P’s of marketing strategy: ? Product – making the appropriate product or a service for chosen target market. Research and analysis has to be done to determine the wants and the needs of the market and that the product to be created should fulfill these specifications. ?Place – the place to market the product has to be properly regarded especially during the process of transporting and distributing the goods and services. Promotion – this division relates to public relations, advertising, and other activities that are conducted to influence the behavior of the consumers toward the product being marketed. ?Price – the product has to be logically priced and that the pricing strategy the organization will use must have a long-term effe ct; thus, several factors are considered whenever pricing a product or a service. The four P’s mentioned are the essentials of marketing, making them the basic things to consider before starting the process of product conceptualization to distribution in the market.When an organization will be able to carry out the following aspects of marketing properly, the profit margin will undoubtedly increase. CELESTIAL TRAVEL AGENCY AND THE FILIPINOS IN THE UNITED KINGDOM The Filipinos are known around the world in the fields of nursing and health care, hospitality and tourism, and Information and Technology and engineering. Out of the 94 million Filipino population, about 8. 7 to 11 million are working, living, or studying overseas, mostly in the Americas, Middle East and Europe. In 2009, about 250,000 Filipinos are working and studying in the United Kingdom alone.The population of Filipinos in the UK is considered to be a big market for Filipino travel agencies operating in the Unite d Kingdom. Since Filipinos are known to love travelling and always want to visit their homeland whenever they are abroad, Filipino travel agencies will not run out of business even if they are just catering to their fellowmen who are living overseas. However, these travel agencies can widen their market share when they try to deviate from the traditional operations of just servicing their fellowmen. The United Kingdom is a very big market for the hospitality and tourism industry.In as much as there are a lot of tourists coming to the UK, there are also a lot of British people who leave the UK to go on holidays in different destinations around the world, and most of them go to tropical countries to avert from the cold climate of the UK. The British people are known to often go on holidays once or twice a year, may they be students, families, or stressed workers. Thus, promoting travel and tour services to the Philippines to the British people market and possibly the European market w ill be a big accomplishment for the organization.To market the Philippines as a holiday destination in Southeast Asia to the international arena is a difficult task because of its palpable competitors, such as Cambodia, Thailand, Malaysia, and Indonesia, which are mostly visited by international tourists mainly coming from Europe and the Americas. Also, the location of the Philippines is not strategic so as to attract more tourists, especially those who have already gone to its neighbouring countries. Moreover, since the Philippines is a group of more than 7,000 islands, to tour it alone takes a lot of time.One must have to travel either by plane or vessel, and bus when on the main island. When people from overseas talk of the Southeast Asian Region, the countries that the people first think of are Cambodia, Thailand, Indonesia, and Malaysia. These four countries are always featured and advertised in newspapers, magazines, on television and a lot more. Thus, considering the number o f Filipino travel agencies in the UK, which is about twenty-five, the number of UK tourists in the Philippine should have increased in the past years. The presence of these agencies would have been a big influence in boosting the Philippine tourism.One of these travel agencies is Celestial Travel and Tours Limited which is the subject of this research. Celestial Travel and Tours Limited is a travel and tours agency that caters mostly to the Filipino people living in the United Kingdom. The products that the organization offers are travel and tour packages to major Philippine destinations and within the United Kingdom and its neighboring countries, such as France, Germany, Netherlands, and Spain, and consultations involving travels in the Far East and world-wide destinations.The organization was established in April 2002 by four professional Filipino women who had extensive knowledge and experience in hospitality and tourism management. The organization’s mission is to provide travel needs and services to the Filipino people. However, most of its services are just travel packages. It is because of the factor that they cater only to the Filipinos in the UK. Tour packages for destinations in the Philippines are seldom being bought, but the packages for places in Europe, for instance Barcelona, Lile, Paris, Amsterdam, and Brussels, are often sold out.Celestial travel agency is the most respected agency among all Filipino travel agencies in the UK. It has a very strong presence in Greater London. It has a very strong network within the Filipino community in UK and some parts of Europe. In an interview with one of the managers, she mentioned that the organization was doing well during the past years. Travel services, especially plane tickets, and UK and Europe tour packages were hitting very good market figures. When asked on the tour packages in the Philippines, she said that the packages were rarely purchased.The reason being is the organization’s ta rget market which is mainly the Filipino community who would rather go to Europe than visiting the prime Philippine tourist destinations. Celestial travel agency has a very good potential of increasing its market share without totally expanding the business. Expansion will definitely come in the future. Since its inception, the organization still remains to be a small-time business with just a little increase of its market share yearly.Since the organization has already established its status in the market as a trusted agency for travel and tours in the UK and Europe, the organization has to focus on improving its sales on the travel and tour packages in the Philippines. The UK is a big market for outbound tourists, and therefore, Celestial Travel Agency just needs the appropriate marketing strategies and public relations to promote the Philippines as a tourist destination to the UK market. ?Brand Identity and Strategy Brand identity is the key to building a name in the business wor ld.Nowadays, consumers rely so much on brand names rather than the products. Companies struggle so much when introducing their products to the market, and those who are able to maintain the quality of their products and services for a long period of time can keep up to the market competition, even so making the competition less competitive for them as they are already well-established. Creating a consistent identity is a very challenging task for marketing since it will carry the totality of the company in the business world. The brand identity bears the ideas, the products and services, and the values of the company.A coherent and well-thought brand identity can be a big tool for advertising creating loyalty from clients for repeat business. Celestial Travel Agency has established its brand identity among the Filipino community in the UK making it a well respected establishment. The organization has to establish its brand identity in the UK market in general, not just the Filipino. It must attain a well-trusted level status to be able to promote its products and services in its new market. Furthermore, it has to maintain the good rapport with the Filipino community, thus, satisfying their needs is essential, and proper marketing can be used to do this.The organization has to bear in mind that to create their big web/network, they will need the first market to do this. ?Network and Relationship Marketing A company’s relationship with its customers is vital. However, how can an organization develop relationship with its customers and soon built a network from them? As most marketers say, â€Å"Relate first, market second. † Marketers always have to make the best impression about them and their products and services and be able to build rapport between them and their customers.Personal interaction is the first step to doing network and relationship marketing, and moving the customers to higher level of loyalty is its main purpose. Doing this strate gy, one must have a thorough knowledge and understanding of the customer’s needs and individuality. As Smith (2011) says, â€Å"Think of relationship marketing as a term with the following overarching definition: those efforts that will make your prospective customers aware of your products and services, position your business in their minds as the obvious choice, and help you build lifelong profitable relationships with them. This marketing strategy is the most effective way to build a big network of customers. However, this strategy is sometimes misused by a lot of marketers especially when they do relationship marketing. Relationship marketing requires the marketers to be honest since he or she might spoil the relationship that was built in the first meeting. Marketers have to bear in mind to always practice responsible relationship marketing. Network and relationship marketing is mostly used by small time businesses as a way to introduce their products to the market, esp ecially to the immediate community they are linked to.It is a great strategy to communications development that makes relationship marketing become the tool to widened network. Celestial Travel Agency utilized this strategy when it started in 2002. Through confidence and honesty, the managers began introducing their services to the Filipinos they know and the ones they met mostly during gatherings. The relationship they were able to build with a number of people started to make a big network of clients. However, they still need to improve on this strategy as it will lead to them to a more stable and successful business.Furthermore, the strategy will enable them to develop a new market, the UK market, for their tour packages to the Philippines. Through proper use of communications technology, the organization can easily rebuild the network they have established to an even wider and bigger network. The organization has to deviate from the traditional way of engaging people to relation ships in order to build business contact with them. The current network of the organization is a great strength to building the opportunity of making it a wider network to market the organization products and services.Going personal contact with people (offline) and communicating through means of Internet (online) makes relationship marketing a broader strategy to make use of. Also, it is beneficial to use the social networking marketing hype. Social networking are extremely valuable to marketers since they do not need to personally talk to these people one by one, but thousands of people can read your adverts or messages on these sites in just a click away. The good thing about these social networking sites is that they are people-focused and other people’s network can also be another person’s network.Thus, doing relationship marketing through these sites is undeniably useful and can give a great amount of returns. ?Strategic Customer Relations Optimizing customer sat isfaction and developing Customer Relationship Management is one of the most challenging tasks that businesses face nowadays. Many organization invest on improves customer service to be able to stabilize customer satisfaction. In order to establish excellent customer service, an organization must essentially develop a customer relationship focused culture.In this practice, the employees who always deal with customers must always be updated on the modernize ways to improving customer service skills. Celestial Travel Agency does not regularly updates its staff or let them undertake trainings in relation to customer service. Thus, there are times that they lose some of their customers, even the valued ones. Constant monitoring of the employees’ performance is a must so as not to jeopardize the well established system and customer relations. Communicating with the customer in an efficient way will result to repeat business.It is to be noted that the products and services offered by the organization is harder to market as it is intangible compared to food and other things that satisfy the basic needs of human beings. ?There are ways to improve customer relations through the following: ? Providing training in key areas that are important in rendering excellent personal service ? Reinforce the skills and abilities the employees have through continuous coaching and feedback ? Measure current performance levels ?Recognition through rewards, may it be monetary and non-monetary, to motivate the employees further to excel ?Establishing effective service delivery processes ?E-marketing Marketers will find e-marketing an easy way to advertise their products without having to spend money that much. Marketers can advertise online for free through blogs, social networks, forums, and even free websites. In addition, the mass market online is enormous and e-marketing will allow marketers to make a personalized type of marketing that gives much focus to their products and services. E-marketing has a lot of benefits to give to an organization which includes the following: ? Openness ?Global Contact ?Minimal Cost Traceable and Measurable Results ?Personalisation ?Social Currency ?Improved Conversion Rates Celestial Travel Agency has its own website; however, it is not being updates every now and then. Thus, information on any recent activities or packages that the organization offers to the public cannot be easily accessible. This is mainly because keeping up the website cost money which the organization cannot afford to shell out since the website needs updates and maintenance every time. Keeping an IT personnel for the company that only works twice a week is very much impractical.Besides, the rate for IT staff in the United Kingdom is way too expensive. However, the organization has to bear in mind that keeping the website is a way to reach to the global market, not just the UK market. The company’s valued clients who live outside the UK basic ally will try to reach the company through the website and customers often purchase products online especially tour packages and travels. Also, on the Internet, there are a lot of activities done by its users, who can be travelers, and they often check out forums.There are forums and blogs built for specific topics, such as tourism, food, and a lot more. On these forums and blogs, related links and links are often circulated to its users and updated websites are mostly posted here. In addition, the influence of social networking sites is prominent to Internet users. Any future activities or tours that the organization plans to do can just be posted on these social networking sites and will soon be shared by a lot of users. The circulation of the information is way too fast that feedbacks can be expected straight away.Information dissemination through social networks is very much fast and quick. Yet, the information has to be check and should always be on the new or recent posts, els e, superfluous posts will overshadow the post intended to be marketed. The organization must always update its websites and posts and encourage their valued user to give testimonials as these will help the company gain more customers online. The strength of e-marketing is strong and opportunities are endless, but the organization must take extra care doing e-marketing as fraud cases are soaring. Guerilla Marketing Levinson, et. al (2007) stated that â€Å"Guerilla Marketing simplifies the complexities and explains how entrepreneurs can use marketing to generate maximum profits from minimum investments. † Guerilla marketing has deviated from the traditional style of marketing where money or investments play an important role to make marketing effective. The guerilla approach is very much suitable to Celestial Travel Agency since the organization is a small business and guerilla marketing is an economical way of marketing products and services.Through this approach, the organiz ation can develop different techniques of promoting its services. Undoubtedly, the guerilla approach is already â€Å"tried and tested† to be very much efficient. However, the strategy requires the marketers to do research and make a campaign plan that is unconventional. Nowadays, marketing adverts and messages has to be humorous and extraordinary to be noticed by people. In as much as it is inexpensive, the guerilla approach takes time to materialize. Unlike the traditional way of marketing where money is a big factor, so results can be seen after a short span of time.Conceptualization takes a lot of time while the implementation process challenging since several methods might be used to test the efficiency of the ideas. Since guerilla marketing is very much unconventional, it does not limit the marketers to a number of ways of doing the marketing yet it requires a high level of energy and dedication. ?Viral Marketing Coined from the word ‘virus,’ viral marketin g strategy makes a great influence in the market, just like a virus, when done properly. Creating impact is the important element of this marketing strategy.Viral marketing is a challenging strategy since an excellent idea is needed to make the advertisement stand out among all other commercials. This strategy is extremely effective and simple but making it work is the difficult task. The first step is to make a buzz. There are many ways to do this and the most effective way is to go on television. It is not making another big advertisement to air on TV, but news, such as media coverage. The good thing about media coverage is it hits the local community straight away and then national level.Furthermore, about seventy percent of the population watch news. Also, news reaches even the people who live in distant areas from the capital. Another way of creating a buzz is going online, through social networking sites. The strategy employed the concept of using the social networks of other people so that they can propagate and expose their products and services. People can easily get influenced from what their peers tell them, and on networking sites, there are millions people; thus, it is easy to make a viral effect on these sites.Celestial Travel Agency will find it difficult to do this marketing strategy. Most of the successful viral marketing advertisements are about the food sector. Nonetheless, the organization can still utilize this strategy in promoting their services, yet minimal results must be expected. Since the agency wants to develop their UK market, not focusing on the UK Filipino community, to market its package tours to the Philippines, the organization can take advantage of the current tourist news about the country.For instance, the result of the new Seven Wonder of Nature can be turned into hype among all the tourists, especially the adventure-seekers travelers of UK. The new seven wonders is big news in the tourism industry; therefore, travelers w ill be eager to discover these places. Moreover, there are also tourist spots in the Philippines that are featured on the news which the organization to battle the tight competition of the tourism industry. British tourists will then know that there are wonderful places to see in the Philippines.Also, travelling around the country is very cheap compared to other South East Asian countries. ?CONCLUSION AND RECOMMENDATION The Philippines has a lot to offer to the world, not just to the UK tourist market, which is the prospect market of the organization for market development. Through the unconventional marketing strategies, such as viral marketing and guerilla marketing, Celestial Travel Agency will not find it difficult to market the Philippines to the UK market. Understanding the wants of the UK market when it comes to going on holidays, the places they choose to go to.The British people are fond of adventure or outdoor activities and love going to the beaches, and since the Philipp ines is a tropical country that offers not only beautiful beaches but extreme outdoor activities too, such as mountaineering, scuba diving, spelunking, etc. , it can become a prime tropical tourist destination. The organization can take advantage of the news features regarding the tourist spots of the Philippines and make it viral. Using news, such as â€Å"Top 20 beaches,† â€Å"Seven Wonders of Nature,† and the other tourist destination rankings, the organization can utilize this and use the guerilla approach to making a â€Å"craze† over it.The organization can do a buzz using blogs, forums, and social networking sites. It can even use upload a marketing ad on Youtube and post it on the different social networking sites. The research understands that the organization has very minimal budget for marketing, thus, e-marketing, guerilla marketing, and viral marketing strategies will be very effective to achieving its desired goals of developing the British market as key tourists to the Philippines.

Cadbury

Chocolate Consumers Feeling Guilty For The Wrong Reasons†¦ STUDENT NAME: SANA SHROFF STUDENT ID NUMBER: 4069231 Table of Contents i. Introduction ii. Summary iii. Objectives of research iv. Marketing and self-concept v. Motivational strategies vi. Cadbury and its decisions vii. Conclusions viii. Recommendations ix. references Introduction Cadbury has been upgrading its manufacturing facility in Australia since 2001 and has become one of the most popular confectionery brands and flavours in the world.Cadbury has a total of fifty per cent market share in the confectionary market, selling 50 % of the top 20 selling chocolate singles in the world. Cadbury is a market-oriented company, therefore its success relies on satisfying the needs and wants of its consumers. It is able to do so by constantly listening to its consumers and its ability of getting adapted to the constant changes in the environment. In response to these changes, Cadbury seeks to create new products, improve on its existing core brands and browse new ways to add value to those brands. SUMMARYThe given case study recognizes the unethical practices used by Cadbury using palm oil instead of cocoa butter in one of their products to cut down on their expenses. This activity of Cadbury therefore left its consumers and other environmental organisations (WWF) attacked. It tried to gain back their consumers trust by their high profile announcements of using the fairtrade logo very shortly for the Dairy Milk Brand in key global markets. Due to the negative response of customers, Cadbury decided to get back to its Cocoa-Butter only formulae and apologized for non-environmental friendly decision made by them.This report illustrates that with corporate governance, ethical behaviour is an integral part of every business (referring to Cadbury in this case). It outlines the key features of the case study and majors out in the marketing/advertising aspect of Cadbury. It also outlines the relevance of self-con cept to marketing and the connection between motivational strategies and consumer behaviour, with a brief conclusion on the case and separate recommendations for Cadbury.Unethical behaviour and lack of Corporate Social Responsibility may damage a firm’s reputation and make it less appealing to its stakeholders, whereas on the other hand, ethical behaviour and efficient corporate social responsibility can bring significant benefits to a business. OBJECTIVES OF RESEARCH Chocoholics: * NZ confectionery market including seasonal products: $490m * NZ chocolate market including seasonal products: $315m * NZ block chocolate market: $100m * NZ Easter egg market: $28m Source: CadburyChocolate is believed to be a stress buster , energizing brainwaves and decreasing your stress level because it contains ingredients that cause the brain to release endorphins(chemicals that make people feel better) & serotonin(anti-depressant). This is why people hog on chocolates or other sweets when the y are angry or depressed. Chocolates therefore act a relaxing notion beneficial to your health. Research shows that the use of chocolates is on the rise global production of cocoa climbing up to 2% each year, reaching approximately 3 million tonnes.An anarchistic study by psychology professor Paul Rozin discovered that chocolates are eaten because of its taste. People eat chocolates because of its taste and its flavour. The activation your body gets every time you eat a chocolate provides feeling to your taste buds makes you come back for it again and again. Marketing & Self-Concept†¦ The principal marketing goal for large business organisations is to focus on the most profitable opportunities in global markets in their own product category and can take the form of quality or quantity or a mix of both.There is a simple logic behind gaining profit with value-by adapting the discernibility and volume in the global market, a business is at its best to provide its consumer with qua lity products accompanied by the best value for money. Another marketing aim is to provide innovation in products along with quality and price which will therefore help increase the volume of sales and market share. Innovation is an approach of being unique and different, an approach that every firm aims by developing their methods of conducting a business.This approach helps firms to stay ahead of the competition. It can be fulfilled by identifying the new opportunities, adapting to the new changes in the environment, assessing the market research information and eventually allocating resources to commercialise on those opportunities. A firm that can easily adapt itself to the changing business environment and the constant changes in its consumers’ perceptions, needs, wants and interests will be able to satisfy its consumers accurately with the most innovative products.The advancement of Cadbury’s Yowie in autralia elucidates these marketing strategies and provides a link between marketing and self-concept. This self-innovation by Cadbury has proven to be a successful product in children’s confectionery market in Australia. It even got voted as the best new confectionery product in the world in 1997 by the world’s grocery press. Yowie is a value for money, awakening and attracting chocolate product relating to a significant cause-the environment. This is how it exemplifies the innovation process from Cadbury of adding more value to a product in a socially fascinating way.This is how Cadbury has built its self-concept by providing its consumers with the benefits that they desire. Self-concept is significant for the study of consumer behaviour because most of the purchases made by the consumers are directly inclined by the image a particular firm has made of it. Marketers need to evaluate this approach of self-concept which will lead them to the development of more effective marketing programs. Compliance and consistency play an impo rtant role in establishing strong relations between self-concept, image of the firm and the final buying behaviour.Appropriate research, analysis and evaluation of the factors affecting the self-concept and their effects on consumer purchasing behaviour will provide more effective market strategic planning. Motivational Strategies The research done for this project shows that consumers do not evaluate the products very accurately & precisely which therefore makes it difficult for marketers to coherent their motivational drives. Consumer buying behaviour depends vastly on the exchange between the inner self and outer urge.Decisions made in the market are influenced by moral values, social relationships, cultural adherence & environmental conditions. We will now extend the list of ways for promotional strategies. there are various strategies used to attract consumers towards the brand and its products. Every consumer segment has its own individual motivation behind buying a particular product. The marketers therefore need to identify and isolate those strategies and perform their promotional activities. This makes it easier to target products and advertising in a more meaningful way to increase consumption.Referring to the given case, the food managers have also paid attention to two types of strategies to resolve motivational conflicts: * Maslow’s Hierarchy Of Needs * McGuire’s Psychological Motivations. These requirements play a significant role in predominance of consumer behaviour. Motivational conflict is an approach that deals with the colliding motivational drives of the consumers. Therefore here the product is used as a solution to such collision of drives. Maslow’s strategy has already been briefly examined in the given case, therefore we skip to McGuire’s Psychological Motivations.It is a classification system that organizes theories of motives into 16 categories which helps marketers to detach motives likely to be involved in various consumption situations. THE DIVISIONS OF CATEGORIES ARE: * Cognitive Preservation Motives: Identifies whether the brand has been performing well consistently. a. Need for Consistency b. Need for Attribution c. Need to categorize d. Need for objectification * Cognitive Growth Motives Includes self-control, variety, and difference of products and achievement of desires. a. Need for Autonomy b. Need for Stimulation c.Teleological Need d. Utilitarian Need * Affective Preservation Motives To reduce stress, express self-identity to others, protection of ego and need of reward. a. Need for Tension Reduction b. Need for Expression c. Need for Ego Defence d. Need for Reinforcement * Affective Growth Motives To increase self-esteem and develop mutually satisfying relationships with others. a. Need for Assertion b. Need for Affiliation c. Need for Identification d. Need for Modelling. According to McGuire ,these divisions would help to resolve the motivational conflicts of consumer buying a Cadbury.Cadbury and its Decisions†¦ Eventually, coming to one of the major hurdles of the case study i. e. , Cadbury using palm oil in its dairy milk product. Cadbury being a large family-owned business is the giant of New Zealand chocolate manufacturing and the 4th largest confectionery business in the world. Therefor it becomes the first of all brands to catch the attention of the general public. Consumers not only have high expectations out of Cadbury but they even enjoy Cadbury’s nature of reciprocating focus mainly on its consumers.But due to the flash of the palm oil incident, customers stopped buying chocolates in droves and The company lost its title of â€Å"New Zealand's most trusted brand. Cadbury taking the decision of trimming its chocolate block sizes by 50g and replacing the expensive ingredient called cocoa butter by the environmentally perplexed and tremendously cheap PALM OIL as a cost cutting strategy which was aspired to be a smart response to the on-going global recession but foolishly turned out to be a public relations hazard.As for the very first time, Cadbury did not target its consumers in this decision-making process and focused only on their own costs and profit, not its effectiveness. Palm oil is a pugnacious constituent and is one of the principal reasons for global warming and accelerated habitat extermination leading to the deaths of orange-tans in vast numbers and is also considered to be the â€Å"single biggest threat for the survival of orang-utans in the wild†. Abundant amount of the oil comes from the land where existing rainforests have been lacerated and conflagrated just to make way for Palm oil plantations.Consumers got even more excited on Cadbury’s use of palm oil even though there are so many manufacturers out there using palm oil in their products because they had blind trust over Cadbury, it inheriting its brand loyalty since so many years and suddenly they hear in the news next morning that the market leader of the confectionery industry †¦having the largest market share of all†¦the role model for all beginner manufacturers has set the wrong example and followed a non-eco-friendly practice of using palm oil instead of its traditional cocoa butter just to cut down on its raw materials expenditure.This is why Cadbury lost its consumer loyalty all of a sudden. Conclusion Cadbury finally lost against consumer pressure and announced that it has decided to go back to cocoa butter instead of the environmentally harmful palm oil. Cadbury New Zealand managing director Matthew Oldham said he was â€Å"really sorry† and that the decision was in direct response to consumer feedback, including hundreds of letters and emails. Therefore proving that Cadbury can never let down its consumers to make profit and that it is surely a market-oriented firm.Members of the nearly 3500-strong Facebook group ‘Take palm oil out of Cadbury chocolate bars' were jubilant at this news. Auckland Zoo director Jonathan Wilcken also congratulated Cadbury on their decision. Recommendations Cadbury needs to have more diversity in its product portfolio and use its profits in the needed areas of the business, for example-R;D, rather than depending only on its confectionery and beverage market. According to today’s lifestyle, due to rising obesity, more than half of the world has become diet conscious and is obsessed with healthy food and calories counting.Thus this is a threat for Cadbury affecting the demand for its existing core brands. New markets are an opportunity for Cadbury. In countries like China and India, where population is reaching the peak giving rise to consumer wealth and spending power, demand for confectionery products will also increase. REFERENCES * INTERNET * ARTICLES * NEWPAPERS * Peter Stimpson and Alastair Farquharson Cambridge International AS and A Level second edition. * Cambridge international IG business Courseboo k. Cadbury ANALYSIS ON CADBURY’S CORPORATE COMMUNICATION PRACTICE 1. 0Introduction The Cadbury story is a fascinating study of industrial and social development, covering well over a century and a half. It shows how a small family business developed into an international company combining the most sophisticated technology with the highest standards of quality, technical skills and innovation. (http://www. studymode. com/essays/Cadbury-527696. html) 2. 0Company Overview The Cadbury's company began life in a modest grocer's in the UK in the 1820s by Quaker, John Cadbury.The most popular item that he sold was cocoa, which made Mr Cadbury make chocolate. The success of this enterprise led John Cadbury and brother, called Benjamin, to form the Cadbury Brothers business, and in the 1850s they were awarded a Royal Warrant as producers for Queen Victoria, an accolade that the company still holds for the monarchy today. John Cadbury's sons Richard and George took over the company in the 1860s, an d five years later introduced a new way of pressing cocoa butter to form the essence of cocoa.They introduced a variety of different chocolates and began, for the first time to sell assortments in boxes that had attractive designs and pictures depicted on them. In 1905, the now iconic Cadbury's Dairy Milk was launched, which is now the company's flagship product. (http://www. blurtit. com/q4118850. html) 3. 0Mission and vision statement (http://www. studymode. com/essays/Cadbury-Schweppes-Versus-Coke-1151857. html) Company Background: Mission Statement:Our Core Purpose is: Working together to create brands people love. Vision Statement: Cadbury Schweppes is committed to growing responsibly. We believe responsible business comes from listening and learning, and having in place a clear CSR vision and strategy. It also comes from having the processes and systems to follow through and an embedded commitment to living our values. 4. 0Core Values Values: ? Clear Objectives ? Responsibilit y ? Openness and Integrity ? Quality ? Committed People ? Competitive Ability Simple Organisation ? Taking Advantage of Change These values are summarised in the behaviours they engender in our colleagues namely: ? Accountability ? Aggressiveness ? Adaptability 5. 0Logo 6. 0Colours The renowned name ‘Cadbury’ and symbolic purple are manifestation of high-quality sweetmeat according to mindset of the consumers. 7. 0Corporate communication based on type of stakeholders There are two types of -internal Employee engagement -external Website Brocures Promo 8. 0Recognition 9. 0Crisis

How to Write a Compare and Contrast Essay - 664 Words

Instructions of How to Write a Compare and Contrast Essay 1 First look at the items you are supposed to compare and contrast. Do you understand them? If you are writing an essay outside of class, look them up. Start with your text book but also look at your notes from class, and even go and check them out at Wikipedia. If you are taking a test, and cant look things up, pause and think over what these things mean. The next two steps will help you remember. 2 Make a list of ways the two items are the same. This is the compare part of a compare and contrast essay. (For an in class essay, it will be good if you can bring in extra paper. If you cant, you can make some notes on the back of your blue book.) Sponsored Links†¦show more content†¦If you feel they are more different than the same, start by comparing the similarities. 7 Now get to your point of view. If you are writing a classic five paragraph essay you may want to spend a whole paragraph pointing out what is wrong with the arguments you made for the other side. If dont have to meet a specific number of paragraphs, you can just get straight to supporting your own point of view. Look at your list items that support you, and write about them all, and why they are important. 8 With compare and contrast essays, the conclusion will be a lot like the introduction. You summarize what you just said. You may find that some points came up in writing that you hadnt put in your intro. This is a good time to refer back to those. 9 If this is not an in-class essay test, you should try to set the essay aside after you finish, so you can go back later with your mind fresh. You may come up with a few other items you want to talk about on your compare or contrast list. You may come up with a better way to write your introduction or conclusion. If you can master how to write compare and contrast essays, you will find that you can use that form for a lot of other essays when the instructor doesnt give you a format. Read more: How to Write a Compare and Contrast Essay | eHow.comShow MoreRelatedHow write a compare contrast essay1363 Words   |  6 Pagesï » ¿How to Write a Compare-Contrast Essay The Elements of a Compare-Contrast Essay What is comparison? Explaining the similarities or points of connection between two ideas, people, or things to give the reader a deeper understanding of each What is contrasting? Explaining the differences or points of disconnection between two ideas, people, or things to give the reader a deeper understanding of each Adapted from Webster’s Third New International Dictionary On what subjects canRead MoreWriting and Compare-and-contrast Essays1384 Words   |  5 Pagesï » ¿Compare and Contrast This type of writing assignment is common. 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